The technological evolution underway has changed the construction industry mostly for the better, ushering in a time of great innovation that has seen huge leaps forward in everything from communication to safety to efficiency. As the sector slowly but surely brings more parts of its operation online, it’s become a more attractive target for cybercriminals.
In response to this increased threat, global advisory, broking and solutions company Willis Towers Watson has launched CyCon, a cyberinsurance solution custom-tailored for the construction industry.
“For construction companies operating and competing in today’s complex environment, the impact of a system failure or cyberattack could result in a range of losses."
“For construction companies operating and competing in today’s complex environment, the impact of a system failure or cyberattack could result in a range of losses, including contingent bodily injury and property damage, significant financial loss, reputational damage, litigation costs and regulatory fines for their business,” Bill Noonan, North America Construction Industry leader, Willis Towers Watson said in a company news release.
“As the construction industry wakes up to these increasing threats, Willis Towers Watson is leading the way by offering a tailored and specific solution that closes the coverage gaps left by traditional products,” he added.
Construction’s heightened exposure to threats of cyberattacks stems from its gradual increased reliance on automation technologies, handling larger amounts of sensitive data potentially valuable on the black market, and using digital channels to transmit that data between third parties like business partners, subcontractors and clients. Traditionally, hackers count on businesses or industries that don’t think of themselves as vulnerable to be lax in their security procedures. To avoid being a hacker’s low-hanging fruit, stepping up security is of the utmost importance.
As we’ve seen many times, companies stand to lose a lot from a hack or data breach. Failing to protect sensitive client data, banking and credit card information or even employee data represents a potentially existential threat, or at the very least is capable of inflicting severe repetitional damage that’s not easily undone. Willis Towers Watson’s Construction Risk Index surveyed construction executives around the world and found that cyberattacks and IT systems failing were among the top risks facing construction companies.
Construction’s heightened exposure to threats of cyberattacks stems from its gradual increased reliance on automation technologies…
CyCon coverage, developed in cooperation with NAS Insurance Services, a specialty cyberinsurance company, is now available in the U.S.
Key features include coverage for bodily injury and property damage resulting from a cyber event. It also covers loss of business income as the result of a breach or attack, even when a third-party company partnering with the construction firm is the one affected. It provides coverage for extra expenses that may be incurred if an attack or other cyber event causes a schedule-killing delay in which the company incurs contractually stipulated penalties, and it even takes drones into consideration, adding coverage for any privacy claims companies may face conducting mapping or surveying jobs using drone aircraft.
Joe DePaul, head of FINEX Cyber/E&O, North America for Willis Towers Watson says in a company news release that CyCon coverage will help its clients address their sector’s unique insurance needs.
“Our construction industry clients will benefit from Willis Towers Watson’s integrated approach to cyber risk management, which includes access to our suite of risk assessment tools…designed to help clients quantify their financial exposure and measure their cybersecurity posture, respectively.”